COMMISSIONER OF CENTRAL EXCISE, MYSORE Vs. GANESH ENTERPRISES

JUDGEMENT

(1.) THIS appeal is directed against order -in -appeal No. 04/2006 -C.E., dated 10 -1 -2006.

(2.) THE relevant facts that arise for consideration are as follows : M/s. Ganesh Enterprises were the manufacturers of detergent soaps/ cakes, powder falling under Ch 3401 and were clearing the goods without payment of duty and without following the Central Excise Procedures. On verification it was found that the unit is having one more factory manufacturing branded beedis and not entitled for the SSI benefit. The turnover of beedi manufacturing unit was about Rs. 270 crores. The goods valued at Rs. 3,13,590/ - were seized under a mahazar. All the three partners of M/s. Ganesh Enterprises were the same as that of M/s. Ganesh Beedi Works. A show cause notice was issued proposing to deny the benefit of Not No. 8/2003 C.E. dated 1 -3 -2003 as amended and demanding the duty of Rs. 12,80,957/ - along with interest and with penal provisions. It was also proposed to confiscate the seized goods and proposing to penalize the Managing Partner Shri Jagannath Shenoi. The adjudicating authority vide the impugned order denied the benefit of SSI exemption and confirmed the demand of Rs. 12,80,957/ - along with interest, imposed penalty of Rs. 12,80,957/ - under Section 11AC. The goods were confiscated and ordered for redeem on payment of redemption fine of Rs. 50,000/ -. A personal penalty of Rs. 1,00,000/ - was imposed on Shri M. Jagannath Shenoi under Rule 26 of CER, 2002.

(3.) AGGRIEVED by such an order, the assessee company filed an appeal before learned Commissioner (Appeals). Learned Commissioner (Appeals) after considering the submissions made by both sides before him came to the conclusion that the order -in -original that confirmed the demand and imposed penalties is not proper and hence he set aside the same. Aggrieved by such an order, the revenue is in appeal before us.